Stocks closed higher Thursday as investors digested a mixed batch of bank earnings and a strong quarterly report from semiconductor giant Taiwan Semiconductor Manufacturing Co. (TSMC). The spotlight now turns to regional bank results and key sector developments on Friday.

Bank Earnings in Focus
The financial sector saw divergent performances following this week's earnings reports. Goldman Sachs rose 4.6% Thursday, bringing its weekly gain to about 4%. Morgan Stanley surged nearly 6% to a new high after its earnings release. In contrast, JPMorgan fell 6% this week, while Bank of America and Citigroup are down roughly 6% and 3.2%, respectively. The S&P Financials sector is the week's worst performer, down 2.45%.

Friday's focus shifts to regional banks, with M&T Bank and Regions Financial set to report. Both stocks have gained approximately 15% over the past three months and are trading near recent highs. The SPDR S&P Regional Banking ETF (KRE) is up 1.13% for the week.

Tech and Semiconductors Rally
TSMC's robust earnings ignited a rally in the chip sector. The stock hit a new high before closing up 4.4% and is now up 12% in January. "Mad Money" host Jim Cramer highlighted the report as a game-changer, stating it "changed the whole landscape" for tech investors and specifically noted strength in high-end phones as a positive signal for Apple. While Apple shares dipped 0.7% Thursday, Advanced Micro Devices (AMD) gained nearly 2%, hitting a new high with a 12% weekly advance. Jabil also jumped nearly 5%.

Auto Sector in the Spotlight
The auto industry will be in focus Friday as the Trump administration continues its push to lower vehicle costs. Toyota reached a new high Thursday and is up 8.5% in January. Ford and General Motors are both about 5% below last week's highs but have posted strong three-month gains of 17.5% and 40%, respectively. Tesla remains 12% below its December peak.

Meta Platforms Under Scrutiny
Meta Platforms shares are down about 5% this week and 22% from their August high. On Friday, CNBC will provide an in-depth analysis of the company's significant spending on artificial intelligence and its broader AI strategy, which has been a key driver behind the stock's 350% gain over the past three years.